ATI to lay off 250 salaried workers at flat-rolled plants
Allegheny Technologies Inc. said Monday it will lay off more than 250 salaried workers in its Flat Rolled Products operations by the end of the second quarter.
The company said in a news release after the close of Monday’s stock market, the action, which will reduce the number of salaried employees in the FRP division by about one-third, will result in ATI recording a $9 million severance charge in the first quarter.
ATI’s Flat Rolled division includes the operations at the Allegheny Ludlum Specialty Plate Mill in Canton Township.
In early March, ATI reached an agreement with about 2,200 hourly employees represented by the United Steelworkers union at its 12 FRP facilities in six states following a seven-month lockout of union employees at the plants.
The company said the actions announced Monday regarding the FRP salaried workers are expected to generate annualized cost savings benefits of more than $30 million beginning in the third quarter.
“Reducing our flat-rolled products business’ dependence on unprofitable commodity products is a difficult process,” said ATI Chairman and Chief Executive Officer Richard Harshman. “We believe in U.S. manufacturing.
However, it is difficult for a U.S.-based company to compete in the global commodity markets, particularly when significant global overcapacity exists for products such as commodity stainless steel sheet and grain-oriented electrical steel. The restructuring and right-sizing we are taking, while painful for our employees and our company, are necessary to help secure the future of ATI Flat Rolled Products.”